Verizon's Strong Year-End Results Secure Dividend Confidence
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy VZ?
Source: Fool
- Dividend Yield Advantage: Verizon boasts a dividend yield of 6.2%, significantly higher than the S&P 500's 1.1%, making it particularly attractive to investors seeking stable cash flow amid market volatility.
- Performance Exceeds Expectations: In its year-end results for 2025, Verizon not only met its full-year guidance but also achieved its highest net additions since 2019, demonstrating strong customer growth and boosting investor confidence.
- Robust Free Cash Flow: Verizon reported free cash flow of $20.1 billion, an increase from the previous year, comfortably covering its $11.6 billion annual dividend payout, ensuring a healthy balance between ongoing investments and shareholder returns.
- Acquisition Brings New Opportunities: The completion of the Frontier Communications acquisition further strengthens Verizon's fiber network, expected to provide additional growth opportunities in the future and solidify its competitive position in the telecommunications industry.
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Analyst Views on VZ
Wall Street analysts forecast VZ stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for VZ is 46.42 USD with a low forecast of 43.00 USD and a high forecast of 51.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
4 Buy
10 Hold
0 Sell
Moderate Buy
Current: 47.010
Low
43.00
Averages
46.42
High
51.00
Current: 47.010
Low
43.00
Averages
46.42
High
51.00
About VZ
Verizon Communications Inc. is a holding company. The Company, through its subsidiaries, provides communications, technology, information and streaming products and services to consumers, businesses and government entities. Its Consumer segment provides wireless and wireline communications services. It also provides fixed wireless access (FWA) broadband through its 5G or 4G Long-Term Evolution (LTE) networks portfolio. The Company's Business segment provides wireless and wireline communications services and products, including FWA broadband, data, video and advanced communication services, corporate networking solutions, security and managed network services, local and long-distance voice services and network access to deliver various Internet of Things (IoT) services and products. It provides these products and services to businesses, public sector customers and wireless and wireline carriers across the U.S. and a subset of these products and services to customers around the world.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Verizon Shares Rise for Seventh Consecutive Day Amid Strong Earnings
- Stock Price Surge: Verizon shares rose 0.33% to $47.017 on Thursday afternoon, marking the seventh consecutive day of gains, reflecting positive market sentiment towards its financial performance.
- Earnings Beat Expectations: The company reported quarterly results on January 30 that exceeded analyst expectations, with strong subscriber additions in Q4, leading to a short-term stock price increase of approximately 12%.
- Capital Return Strategy: Verizon announced a dividend increase and authorized up to $25 billion in share buybacks, while also projecting $5 billion in operating expense savings to support its 2026 outlook, although analysts express caution regarding its growth prospects.
- Divergent Analyst Ratings: According to Seeking Alpha's rating system, Verizon holds a 'Hold' rating with an A+ in profitability but a D- in growth, indicating analysts' concerns about future growth, particularly with flat wireless service revenue expectations.
See More
Verizon's Strong Year-End Results Secure Dividend Confidence
- Dividend Yield Advantage: Verizon boasts a dividend yield of 6.2%, significantly higher than the S&P 500's 1.1%, making it particularly attractive to investors seeking stable cash flow amid market volatility.
- Performance Exceeds Expectations: In its year-end results for 2025, Verizon not only met its full-year guidance but also achieved its highest net additions since 2019, demonstrating strong customer growth and boosting investor confidence.
- Robust Free Cash Flow: Verizon reported free cash flow of $20.1 billion, an increase from the previous year, comfortably covering its $11.6 billion annual dividend payout, ensuring a healthy balance between ongoing investments and shareholder returns.
- Acquisition Brings New Opportunities: The completion of the Frontier Communications acquisition further strengthens Verizon's fiber network, expected to provide additional growth opportunities in the future and solidify its competitive position in the telecommunications industry.
See More
Verizon Sues T-Mobile Over False Advertising Claims
- Lawsuit Filed: Verizon has filed a lawsuit against T-Mobile, alleging false advertising that claims customers can save over $1,000 by switching carriers, which has caused irreparable harm, highlighting the intense competition in the telecom market.
- Exaggerated Claims: Verizon claims that T-Mobile exaggerated savings figures by more than 100% when comparing promotional rates to Verizon's standard rates, failing to provide fair cost comparisons that mislead consumers.
- Regulatory Oversight: Verizon noted that T-Mobile's savings claims are “substantially identical” to those deemed unsubstantiated and misleading by the National Advertising Review Board (NARB) in 2025 and 2026, underscoring the need for advertising regulation.
- Damages Sought: The lawsuit seeks unspecified triple damages for alleged intentional false advertising and violations of New York's anticompetitive laws, as well as a halt to the challenged ads, reflecting Verizon's commitment to maintaining fair competition in the market.
See More
Verizon Sues T-Mobile for False Advertising Claims
- False Advertising Allegations: Verizon has filed a lawsuit in Manhattan federal court against T-Mobile, accusing it of misleading consumers by claiming they could save over $1,000 by switching carriers, which Verizon argues are exaggerated claims, with some inflated by over 100%.
- Regulatory Warnings: The lawsuit states that T-Mobile continued to promote savings claims that are 'substantially identical' to those found unsubstantiated and misleading by the National Advertising Review Board in 2025 and 2026, indicating a pattern of misleading behavior.
- Claims and Injunction Requests: Verizon is seeking unspecified triple damages under the federal Lanham Act for alleged intentional false advertising, along with a request for the court to block T-Mobile from running the challenged advertisements, emphasizing its commitment to fair competition in the market.
- Performance Context: This legal action follows Verizon's strong fourth-quarter results and positive 2026 guidance, reporting $36.4 billion in revenue, a 2% year-over-year increase, and adding 616,000 postpaid phone subscribers, highlighting its strengthened market position.
See More
Stable Dividend Stocks: Verizon and Chevron
- Verizon Dividend Increase: Verizon raised its dividend to $0.69 per share, marking the potential for its 20th consecutive year of increases, with a current yield of 6.2%, significantly higher than the S&P 500 average, enhancing investor confidence.
- Strong User Growth: Verizon added nearly 1 million net additions in its latest quarter, the best performance since 2019, and expects phone net additions to grow 2-3 times by 2026, further driving earnings and cash flow growth.
- Chevron Dividend Boost: Chevron increased its dividend by 4% to $1.78 per share in January, with a yield of 4.03%, and has now raised its dividend for 39 consecutive years, demonstrating financial stability and reliability.
- Financial Health: Chevron reported $5.5 billion in free cash flow in Q4, with a debt-to-equity ratio of 0.21, one of the lowest in the industry, indicating the company's ability to sustain its dividend payments despite challenges from fluctuating oil prices.
See More
Verizon and Chevron's Dividend Growth Prospects
- Verizon Dividend Increase: Verizon raised its dividend to $0.69 per share, marking its 20th consecutive year of increases, with a current yield of 6.2%, which is six times higher than the average yield of the S&P 500, showcasing its stability and appeal in volatile markets.
- Chevron Dividend Boost: Chevron increased its dividend by 4% to $1.78 per share in January, and while its yield stands at 4.03%, its 39 consecutive years of dividend increases attest to its financial robustness, despite challenges from falling oil prices and a one-time pension hit.
- Financial Health: Verizon added nearly 1 million net additions in its latest quarter, with expectations of 4% to 5% growth in earnings per share and a 7% increase in free cash flow by 2026, indicating that the company can not only maintain its dividend but also deliver solid returns.
- Chevron Production Growth: Chevron has increased production globally, particularly in the U.S., which is expected to boost revenue and offset price declines, and its strong financials, highlighted by a low debt-to-equity ratio of 0.21, position it well to continue supporting dividend payments.
See More
Verizon Shares Rise for Seventh Consecutive Day Amid Strong Earnings
- Stock Price Surge: Verizon shares rose 0.33% to $47.017 on Thursday afternoon, marking the seventh consecutive day of gains, reflecting positive market sentiment towards its financial performance.
- Earnings Beat Expectations: The company reported quarterly results on January 30 that exceeded analyst expectations, with strong subscriber additions in Q4, leading to a short-term stock price increase of approximately 12%.
- Capital Return Strategy: Verizon announced a dividend increase and authorized up to $25 billion in share buybacks, while also projecting $5 billion in operating expense savings to support its 2026 outlook, although analysts express caution regarding its growth prospects.
- Divergent Analyst Ratings: According to Seeking Alpha's rating system, Verizon holds a 'Hold' rating with an A+ in profitability but a D- in growth, indicating analysts' concerns about future growth, particularly with flat wireless service revenue expectations.
See More
Verizon's Strong Year-End Results Secure Dividend Confidence
- Dividend Yield Advantage: Verizon boasts a dividend yield of 6.2%, significantly higher than the S&P 500's 1.1%, making it particularly attractive to investors seeking stable cash flow amid market volatility.
- Performance Exceeds Expectations: In its year-end results for 2025, Verizon not only met its full-year guidance but also achieved its highest net additions since 2019, demonstrating strong customer growth and boosting investor confidence.
- Robust Free Cash Flow: Verizon reported free cash flow of $20.1 billion, an increase from the previous year, comfortably covering its $11.6 billion annual dividend payout, ensuring a healthy balance between ongoing investments and shareholder returns.
- Acquisition Brings New Opportunities: The completion of the Frontier Communications acquisition further strengthens Verizon's fiber network, expected to provide additional growth opportunities in the future and solidify its competitive position in the telecommunications industry.
See More
Verizon Sues T-Mobile Over False Advertising Claims
- Lawsuit Filed: Verizon has filed a lawsuit against T-Mobile, alleging false advertising that claims customers can save over $1,000 by switching carriers, which has caused irreparable harm, highlighting the intense competition in the telecom market.
- Exaggerated Claims: Verizon claims that T-Mobile exaggerated savings figures by more than 100% when comparing promotional rates to Verizon's standard rates, failing to provide fair cost comparisons that mislead consumers.
- Regulatory Oversight: Verizon noted that T-Mobile's savings claims are “substantially identical” to those deemed unsubstantiated and misleading by the National Advertising Review Board (NARB) in 2025 and 2026, underscoring the need for advertising regulation.
- Damages Sought: The lawsuit seeks unspecified triple damages for alleged intentional false advertising and violations of New York's anticompetitive laws, as well as a halt to the challenged ads, reflecting Verizon's commitment to maintaining fair competition in the market.
See More
Verizon Sues T-Mobile for False Advertising Claims
- False Advertising Allegations: Verizon has filed a lawsuit in Manhattan federal court against T-Mobile, accusing it of misleading consumers by claiming they could save over $1,000 by switching carriers, which Verizon argues are exaggerated claims, with some inflated by over 100%.
- Regulatory Warnings: The lawsuit states that T-Mobile continued to promote savings claims that are 'substantially identical' to those found unsubstantiated and misleading by the National Advertising Review Board in 2025 and 2026, indicating a pattern of misleading behavior.
- Claims and Injunction Requests: Verizon is seeking unspecified triple damages under the federal Lanham Act for alleged intentional false advertising, along with a request for the court to block T-Mobile from running the challenged advertisements, emphasizing its commitment to fair competition in the market.
- Performance Context: This legal action follows Verizon's strong fourth-quarter results and positive 2026 guidance, reporting $36.4 billion in revenue, a 2% year-over-year increase, and adding 616,000 postpaid phone subscribers, highlighting its strengthened market position.
See More
Stable Dividend Stocks: Verizon and Chevron
- Verizon Dividend Increase: Verizon raised its dividend to $0.69 per share, marking the potential for its 20th consecutive year of increases, with a current yield of 6.2%, significantly higher than the S&P 500 average, enhancing investor confidence.
- Strong User Growth: Verizon added nearly 1 million net additions in its latest quarter, the best performance since 2019, and expects phone net additions to grow 2-3 times by 2026, further driving earnings and cash flow growth.
- Chevron Dividend Boost: Chevron increased its dividend by 4% to $1.78 per share in January, with a yield of 4.03%, and has now raised its dividend for 39 consecutive years, demonstrating financial stability and reliability.
- Financial Health: Chevron reported $5.5 billion in free cash flow in Q4, with a debt-to-equity ratio of 0.21, one of the lowest in the industry, indicating the company's ability to sustain its dividend payments despite challenges from fluctuating oil prices.
See More
Verizon and Chevron's Dividend Growth Prospects
- Verizon Dividend Increase: Verizon raised its dividend to $0.69 per share, marking its 20th consecutive year of increases, with a current yield of 6.2%, which is six times higher than the average yield of the S&P 500, showcasing its stability and appeal in volatile markets.
- Chevron Dividend Boost: Chevron increased its dividend by 4% to $1.78 per share in January, and while its yield stands at 4.03%, its 39 consecutive years of dividend increases attest to its financial robustness, despite challenges from falling oil prices and a one-time pension hit.
- Financial Health: Verizon added nearly 1 million net additions in its latest quarter, with expectations of 4% to 5% growth in earnings per share and a 7% increase in free cash flow by 2026, indicating that the company can not only maintain its dividend but also deliver solid returns.
- Chevron Production Growth: Chevron has increased production globally, particularly in the U.S., which is expected to boost revenue and offset price declines, and its strong financials, highlighted by a low debt-to-equity ratio of 0.21, position it well to continue supporting dividend payments.
See More
